国外某公司财务分析手册.pdf

国 外 某 公 司 财 务 分 析 手 册 Transparent Financial Reporting Analysis ManualBusiness UnitsAccountableEnterpriseProductProfitabilityFocusContentsChapter 1 Introduction1.Kater Methodologies.2.Aggregation Methodologies.3.Rate/Volume Concept.4.Commentary.5.Roles&Responsibilities.Chapter 2 Form M Summary.Chapter 3 Foreign Currency Reconciliation.Chapter 4 Sales Reconciliation1.Overview2.Price Realization.a.Foreign Currencyb.Published Price.c.Sales Discount.d.Warrantye.Transfer Yield.f.Physical Sales Volume.3.Base Period Variable Margin Percentage.4.Volume Impact on Margin.Chapter 5 Mix1.Overview2.Geographic Mix.3.Country/Region Mix4567bGeographic Mix on Transfers.Product Mix Impact on SalesProduct Mix between Product Lines.Product Mix within Product Lines.a.Revenue SalesNon-revenue Sales and TransfersChapter 6 Variable Cost1.Overview.2.Cost of Sales.3.Transfer In/Inter-company Purchases.4.Inventory Adjustments/RSSM5.Other Variable Cost.Chapter 7 Period Cost of Sales1.Overview.2.Period Costs Incurred.3.Period Costs Inventory Effect.4.Variable Margin Percentage.Chapter 8 Parts.Chapter 9Period SG&A/R&D.Chapter 10 Other Income and Expense.Chapter 1 1 The Chunk Chart.Chapter 12Contact Details.Chapter 13 Glossary(Analysis).Chapter 14 Glossary(TFR).2In order to fully leverage the benefits of Transparent Financial Reporting,a comprehensive process for financial analysis was developed.The principles of this new process are:One tool for all analysis needs-All business unit,product line and consolidated analysis will be performed using this processHighly mechanical-Utilizing pre-populated templates and pre-defined calculations,manual input into the model has been minimizedMandatory and consistent methodologies-The prescribed methodologies for calculations and aggregation must be followed or the mechanical process will not provide accurate and consistent financial analysisKater utilizes the Form M as the model to explain changes in results between comparison periods.The Form M explains changes in sales and changes inprofit.Major drivers of both of these changes are illustrated in the overall structure of the Form M depicted below.Form M StructureChange in Corporate ProfitSales changesDue toCost changesCurrency impactsPrice realization:1)Published price2)Salej discount3)Warranty_Currency impacts-Variable costsMixPhysical sales voluriePeriod costs4)Transfer yieldPhysical sales volumeOther income/expenseThe primary focus of financial analysis at Kater is to explain actual resultsboth year over year and vs.plan,as well as RBM(Rolling Business Management)forecasts.Below is a summary of relevant comparison periods.YTD vs.YTDYTD vs.PlanMonth vs.PlanQtr vs.QtrRBM Analysis(current vs.prior year,current vs.future year,current vs.plan)This is not an all-inclusiv e list of analysis requirements.For instance to prove that current month results do not contain significant errors it is necessary to compare current month to previous month actual results.Transparent Financ ial Reporting Analys is Manual A.doc,9/8/2006,11:23AM 3The final output of the Form M is a graphical depiction of changes in resuIts for both sales and corporate profit.These charts,commonly referred to aschunk charts,are automatically created and are graphical models inherent in the FO TOM T ICurrentPeriod_LJ3W 5_ L9&ZL4_LW 1U _ 1.6.9.,.842Base PerioH17)06,675 174,962 172,512 146,337Change 124,000(3,732 23,31)5 2 3 3。33008 0 3(2 6.50 6 1.(14.0 1.(49.9)3)3)2 1 6.00 50 4 38.7 5.1 20)1 3.0Q62.8)0.9.4)0)2 810050Base Period Vol/Mix Price Real Trans Yld Warr CCYMatl Cost Var Cost PCOSSG&A R&D Parts(McFee)Other Oper All Other Corp Burden Current PeriodProfit ChunkSales&O Ac CorporateRevenues peratin countab ProfitglePProfi rofitCurrent Period 1,130,675 198,714 196,017 169,842Base Period 1,006,675 174,962146,337 Change 124,00023,505 23,505172,51223,7521 87(4)5 0-5 1,131,2001,007 321,000200Base Period NS&T Volume Price Realization Warranty Currency Transfer Yield Geographic Mix-Transfers Parts(McFee Related)Current Period NS&TSales ChunkThe Kater financial analysis process flow is summarized in the following paragraphs and the attached flowchart.Essbase:The backbone of the analysis tool is Essbase.Essbase is a series of data cubes that allow for manipulation of significant amounts of data.Essbase collects data from multiple sources and pre-populates the analysis templates with data necessary to complete the Form M.After the monthly closing process is complete,actual data is loaded from the Accountable Data Cubes within the General Ledger System(GLS).Prior year actual data,business plan and RBM forecast data are loaded via RBM templates.The front end user-interface to Essbase is referred to as“Catalyst”.Catalyst isan Excel add-in that allows users to send and retrieve data to the Essbase data cubes.Business Unit Analysis:This analysis is completed by the relevant Business Manager,utilizing the pre-populated templates and supplemental calculations as required.Business Unit Form MJ s are always subdivided byProduct Line(effectively all Business Units will have a Form M for each Product Line they support as well as a Consolidated Business Unit Form M).Commentary to support the Business Unit analysis is required as well.Onee completed Business Unit analysis is submitted into Essbase to facilitate the creation of Product Line Form M s.Product Line Analysis:After all Business Unit(as well as by ProductLine within Business Unit)analysis is complete,Essbase creates the Product Line Form M s.The Business Unit that houses the Global Product Manager will provide commentary to support the Product Line analysis.Once completed this analysis is submitted into Essbase to facilitate the creation ofthe remaining steps of the Product Line Cascade.Product Category and Sub-Line of Business Analysis:After the Product Line analysis is finalized the Product Category and Sub-Line of Businessanalysis will be mechanically generated.Principal Line of Business:At the Principal Line of Business level several Corporate variances that are not assigned at a lower level are added to the analysis;actual foreign exchange gains/losses,actuarial gains/losses on pension assets and LIFO variances,etc.These variances flow through toConsolidated analysis as well.On a forecast basis these items will be assigned by CAS.Overview of the Transparent Financial Reporting Analysis processBusiness Unit Comparison Period DataActual Data Replicatedto EssbaseComparison period data pre-populEs ated(ABP,PLoadedvia RBMsbase D rior year actuata al or RBM)templatebeCuBusiness Unit(By Product Line)Form M s with CommentaryEssbase DataCubeProduct Line Form M s with CommentaryAGGREGATION-Business Unit Form MThe calculations for the Business Unit Form M can be divided into three categories:1.Additive Items;2.Business Unit Calculations;and3.Recalculated Items.Grouping calculations into these three categories facilitates achieving transparency between Business Unit analysis and Product Line analysis.These aggregation methodologies are predefined and cannot be deviated from.Additive Items:These items(see figure below)for the Business UnitForm M are add-ups of Product Line calculations.Calculations will be completed at the Product Line within Business Unit level and added together toarrive at the Business Unit total.Business Unit Calculations:These items(see figure below)for the Business Unit Form M are to be calculated at an overall Business Unit Level.The total Business Unit Form M variance will then be split by the BusinessUnit between the Product Lines within the Business Unit.Recalculated Items:The sum of total margin impact of physical salesvolume and mix for total Business Unit and total Product Lines within a Business Unit are equal.However,as you aggregate from Product Lines withina Business Unit to total Business Unit,volume and mix must be recalculated.The form M calculates volume and mix by Product Line withinBusiness Unit.It then recalculates volume at a Business Unit level.The difference between the additive volumes of the Product Line calculations andthe Business Unit calculation is defined as mix between Product LinesBusiness U n if o r m(e.gM rffrf jT)Price Realizatio nPub lishe d Price ChangeTraSale s Varia nee Rat e n sfe r YiCha nge e Id Curr Volu mePro duct Mix Imp act o e ncy Ma Mix be twee n Pro ductn Sales Mix b y Model Warr terial Linesanty TraIn vento ry Ad ju stments/RSSM,sn sfe rs InPe riod Cost s Va rPa rts Pro fit(McFee)iable L aOthe r Op erating In c/Exp bo r/BurOthe r I neo me&Exp ense denCorporat e Burden Items Other Varia bl八 Recalculatione CostsB RecalculationAdditiveItemsuCa1 c_,T.Pduct Line Form M wrtn Business Unit.(e.g.Pipelaypr w/in TTT)Product Line Form M w/in Business Unit(e.g.Pipelayer w/in TTT)Product Line Form Mw/ln Business Unit(e.g.MTT w/in TTT)Product Line Form M w/in Business Unit(e.g.MTT w/in TTT)Product Line Form M w/in Business Unft(e.g.LTT w/in TTT)_Product Line Form M w/in Business Unit(e.g.LTT w/in TTT)Price Re aliza tio nPublishe d Price Chan ge Sale s Varia nee Rate Cha nge Pro duct Mix Impa ct on Salessfer Yield CuC ount ry/Region Mix porate B rren cy Ma teria 1Oth er Sales Var.Rate Ch u rd en It Transfers Inan geMix by Mddel一 Warra ntyems Varia ble La bor/BVariab le CIn ve ntory Adjusting nts/Vo lumeAGGREGATION-Product Line Form MThe calculations for the Product Line Form M are fully mechanical,based on Business Unit inputs,and they can be divided into two categories:Additive Items and Product Line Calculations.Grouping calculationsinto these two categories facilitates achieving transparency betweenBusiness Unit analysis and Product Line analysis.Additive Items:These items(see Figure below)for the Product Line Form M are considered to be add-ups of the Product Line pieces calculated in the Business Unit Form M process.Each Product Line is fed Form M datavia Essbase from one or more Business Units.The variances in the list below for the Product Line Form M are a summation of the variances fed fromthe Business Unit Form Ms.Product Line Calculations:Volume,Geographic Mix,and Mix will becompleted at an overall Product Line level.All Product Line calculationsare performed mechanically within the Form M.Product醯 用 落 网 鹏(田 可 T)Price Realization Published Price Change Sales Variance Rate ChProduct Mix Impacton Sales Geographic MixCountry/Region MixOther Sales Var.Rate Changeange Transfer YieldCurrency Mix by Model Warranty Period Costs Material Transfers InVariable Labor/BurdenOther Variable Costs Inventory Adjustments/RSSM s Parts Profit(McFee)Other Operating Inc/ExpOther Income&ExpenseVolumeMixlie MixAdditiveItemsProduct Line Form M w/in Business Unit(e.g.LTT w/in LACD)Product Einei-BFGeograProductSales Vari aIrriraieecatliozantiS aanlesPuMb iixshbPeydrMicPeordiRceeel aClihzantigoneSales PVWuabrailarisrnaxlnlcmypa GeogTraraphnisGcfeMrosixglrr oanphTicraMnsixfers PVVPVPVaroridaubclet CMLoaixuhcneetdyRParnceeCChhaannggee.c Transfer Yield.o.SPaelersioV3施 Tioaiin圈 酸 Iblnomtrr/ypB/auI tcredt gincnrSMaleix s OtOhtehreVrMaSirxaialbebysleMRate ChangeVCaoord.seRtlsate ChangeInventory AdjuWsTtmararernansntfstey/rRYSiSelMd sParts PPreorfiot(dCMCucroFresetnesc)y Other OperaMMtianitxgebrlinayclM/Eoxdpel Other IncoTmraen&sWfeEarrxsrpalennntyse CorpVoarraitaebBleuPLrdearebionodrl/tBCeumorssdtesnOther VariMabalteerCiaoIstsInventory AdjTusratmnsefnetrss/RInSSM sPaVrtasriParbolefit L(MabcoFre/Beu)rdenOtherOOthpeerraV tainrgialbnlec/CExopstsOlnthverntlnocryomAdeju&stEmxepnetnss/ReS SM sCorpoPratretsBPurrodfeitn(MItecFmese)Other Operating Inc/ExpOther Income&ExpensVolumeMixGeographic MixVolumeMixMix微 耀 哪 hie MixeCorporate Burden ItemsFor purposes of variable margin analysis the Form M separates total sales and margin between rate and physical sales volume.The illustration below using sample data highlights the rate/volume concept.Illustration:Rate/Volume ConceptNet sales&transfers-base 1,000Net sales&transfers-current 1,200 Total net sales&transfers change 200less:Currency movements(20)Published pricchangesSales discount changes 10 Price RealizationW arranty 30 Physical sales volume change 13050Rate of growth of physical sales volumes volum e change/(base)Net sales&transfers x 100)13%?(Physical saleMargin changeNet sales&transfersActual variable costsBase Period Current PeriodP&L P&L Change1,000 1,200 200(700)(850)(150)300 350 50Base margin 30%Therefore,change in cost due to change in physical sales volume must b-e?Physical sales volume changeCosts as%of net sales&transfers(base)Change in variable costs due tophysical sales volume change130Gross variable costs-base periodGross variable costs-current periodTotal variable costs variance(150)(91)Remaining cost(59)(150)Cost Assumption:Base CurrentVariable costs 700 850-Variable costs-flexed 700 791?based on+13%change in physical sales volumeChange in variable costs due to rate changes(59)791-850This is a simplified example to illustrate the rate/volume concept only.For example,mix is assumed to be neutral for ease of illustration.The example above shows how a change in margin can be separated between rate and physical sales volume.The total change in margin is$50(favorable)resulting from a$200 favorable change in sales and a$150 increase in associated costs.At the sales level,the change in physical sales volume is$130(favorable).The remainder is due to currency,published price,sales discounts andwarranty.The Sales Recon chapter contains further details on this area.On costs,the variance resulting from the increase in physical sales volume is a$91 increase in costs and the rate variance is$59(unfavorable).See the Variable Cost chapter for more details.The Form M provides significant information on period-to-period change but does not provide the complete story.Critical to supporting the FormM is the business commentary provided by Business Units for both Business Unit and Product Line results.This commentary provides the rootcauses or business reasons which drive the Form M variances.The commentary should provide insight that is not evident through the numbers.Business Unit commentary will be utilized by Corporate Accounting(CAS)as the basis for results explanations that will be provided to the Administrative Council,Executive Office and the Board of Directors as well as for our external results communications.Example 1:Insufficient:SG&A decreased by$1 million Sufficient:SG&A labor cost decreased$4 million due to 6 Sigma-driven headcount reduction of 40 heads in process X.This was partially offset by increased local PINS ICP metric of$2,000(base period factor of 0.9 v.current period factor of 1.0)and increased spending of$1,000 on consulting related toProject Y.Example 2:Insufficient:Sales discounts increased by 2%Sufficient:Market price actions from competitor X were resulting in significantPINS losses.Sales program A was launched on April 1,200X to regain lost PINS;this program will expire on June 30,200X and we will reassess thesituation at that time.The Form M is the mechanism